Cryptocurrency Market Manipulation Logic?

[Gcrypto786]

Greeting BT Users,

As I am involved in the crypto world for the past 3-5 years and closely watching BTC when its price was around $400 - $700. When the BTC first pumped in 2017/2018 than it creates chaos in the whole world and more and more users are attracted because of the profit they see, but when the price suddenly down and BTC dumped to $5000 from $20k then a lot of new as well as experience users lost their money and also trust from Cryptocurrency.

Recently BTC again pumped and the price reached $60k and was predicted to touch the target of $100k but again the BTC price dumped around $35k - $38k. From all this pump and dumped I did not yet UNDERSTAND that why and how this happens and the difference is huge. BTC is considered the king of the crypto world and it causes the price Pump and Dumped of all the coins. Also Crypto market is untrustable as any person having a status/huge bank balance can easily manipulate the market as Elon Musk did.

Any expert can explain the reason behind those huge pump and dumped of BTC?

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[Beparanf]

Greeting BT Users,

As I am involved in the crypto world for the past 3-5 years and closely watching BTC when its price was around $400 - $700. When the BTC first pumped in 2017/2018 than it creates chaos in the whole world and more and more users are attracted because of the profit they see, but when the price suddenly down and BTC dumped to $5000 from $20k then a lot of new as well as experience users lost their money and also trust from Cryptocurrency.

Recently BTC again pumped and the price reached $60k and was predicted to touch the target of $100k but again the BTC price dumped around $35k - $38k. From all this pump and dumped I did not yet UNDERSTAND that why and how this happens and the difference is huge. BTC is considered the king of the crypto world and it causes the price Pump and Dumped of all the coins. Also Crypto market is untrustable as any person having a status/huge bank balance can easily manipulate the market as Elon Musk did.

Any expert can explain the reason behind those huge pump and dumped of BTC?

To make it simple, Some big players already taking profit on this volatile market. Notice that the price pump too fast during bull run which means a lot of money entering including smart and dumb money, Obviously smart money taking profit on the peak then chain reaction follows for those big players that didn't take profit at top. This is just a cycle on crypto so need to worry. You can use tradingview to measure the volume of pump versus the dump since the bull run start, You will notice there that the amount almost close which support my hypothesis.

[SquirrelJulietGarden]

Market manipulation is repeated with emotion, psychology and the crowd repeat what they do many times. 90% of people in the crowd don't change and they are target of influencers and manipulators.

[zasad@]

The main goal of market makers is that more people traded on the margin market.
If there are more shorts in the market, then the price of the coin is increased while the shorts' owners lose money.
Market makers do a similar manipulation against people who trade long on the margin market.
HOLD!

[ChrisPop]

The financial markets are hardly "explainable". In order to properly describe each market move you would need to know the plans and strategies of most of the market participants which is impossible unless you have a crystal ball or you're a extremely experienced mind reader who can handle the thoughts of millions of people at once.

Some investor might have felt anxious or fearful and dumped all his bags who knows, or Elon Musk might be playing games with Tesla's or his own portfolio and doesn't care about market impact. My point is that you can't know the intentions of people who are selling or buying at any point in time, thus you can't explain dumps or pumps.

IMO the healthy way to think about it is "there were more buyers than sellers" or "there were more sellers than buyers".

[GreatArkansas]

Any expert can explain the reason behind those huge pump and dumped of BTC?

I'm not an expert but for me, I can say that that's how cryptocurrency very volatile. Especially we are still early now, the market cap of Bitcoin now is still very low compare to other assets, like Gold.
What I can see is volatility at all. As Bitcoin is the most volatile asset in the world, so these huge dumps and pumps are really expected. It's just like what they say "What going up must go down, what going down, must go up".

Manipulation could be possible these days, if you already read this article, about Bitcoin Cartel around 2018 -> 4th Dimension: Bitcoin-Manipulation-Cartel — Price-Suppression is the Goal, this may help you.

[avikz]

Any expert can explain the reason behind those huge pump and dumped of BTC?

No one would be able to point out the exact reason why pump and dump happens in the market. Considering the size of bitcoin market, it's pretty impossible for any single group or entity to manipulate the market. But since you are watching the crypto market since last few years, you know that people will book profit after it reaches to a price point. This price point differs from person to person.

Remember,  a lot of people invested in bitcoin at 22k level and when it went back to 4k level, everyone was disappointed. Now you can't get in at even 22k level. So patience is the key here. Market corrects after every ATH and that's what is happening now.

[jasonjm]

Greeting BT Users,

As I am involved in the crypto world for the past 3-5 years and closely watching BTC when its price was around $400 - $700. When the BTC first pumped in 2017/2018 than it creates chaos in the whole world and more and more users are attracted because of the profit they see, but when the price suddenly down and BTC dumped to $5000 from $20k then a lot of new as well as experience users lost their money and also trust from Cryptocurrency.

Recently BTC again pumped and the price reached $60k and was predicted to touch the target of $100k but again the BTC price dumped around $35k - $38k. From all this pump and dumped I did not yet UNDERSTAND that why and how this happens and the difference is huge. BTC is considered the king of the crypto world and it causes the price Pump and Dumped of all the coins. Also Crypto market is untrustable as any person having a status/huge bank balance can easily manipulate the market as Elon Musk did.

Any expert can explain the reason behind those huge pump and dumped of BTC?

Simplest answer to this question is, whales wants to earn huge. They buy coins at a lower price then create hype and sell at a higher price. This is exactly what happened in BTC pumps and dumps. The guys who lose their money are retail investor who invested in the market to earn big in limited time. All this is connected to human psychology and emotions. And frankly speaking, we humans are very emotional.

[fiulpro]

Hi
I don't consider myself an expert but for sure but for sure the demand and supply works everywhere but here. The huge dump is definately due to people who have either a huge sum of money or if they are involved in groups where they try and influence the price altogether. See I feel like the whales work together. At the same time there are people like Elon Musk to influence the market. The not so rich people (mentally) generally follow whatever they say. Twitter and other social media apps are genuinely now a days a tool to make such changes. Plus when the price starts to fall it suddenly starts a chain reaction due to panic selling and it falls even further. Therefore at the end of the day it might be whales, influential people, governmental announcements , bans etc.. but at the end you cannot determine a single cause.

[2double0]

<<>>
Any expert can explain the reason behind those huge pump and dumped of BTC?

They all play the same type of pump and dump games to shake the paper hands out while they start accumulating from the very bottom that they decide. Then after few years, they show some volumes, attract new customers, play the same manipulation on them, take away their money 'legally' and dump on those innocent new traders. This will go on till this market goes extinct.

[Cherylstar86]

Greeting BT Users,

As I am involved in the crypto world for the past 3-5 years and closely watching BTC when its price was around $400 - $700. When the BTC first pumped in 2017/2018 than it creates chaos in the whole world and more and more users are attracted because of the profit they see, but when the price suddenly down and BTC dumped to $5000 from $20k then a lot of new as well as experience users lost their money and also trust from Cryptocurrency.

Recently BTC again pumped and the price reached $60k and was predicted to touch the target of $100k but again the BTC price dumped around $35k - $38k. From all this pump and dumped I did not yet UNDERSTAND that why and how this happens and the difference is huge. BTC is considered the king of the crypto world and it causes the price Pump and Dumped of all the coins. Also Crypto market is untrustable as any person having a status/huge bank balance can easily manipulate the market as Elon Musk did.

Any expert can explain the reason behind those huge pump and dumped of BTC?

No expert behind this present situation that we're facing today, though we seen such pumps from previous market that doesn't mean it's going to be consistent. We also be precautious on different ideas that might occur someday. Market declination always made it more harder even if wealthy personalities like Elon Musk provided positive feedback on bitcoin and other coins.

[livingfree]

Bitcoin went from $20k to $3k. And try to understand that bitcoin is a decentralized cryptocurrency and there are a lot of markets that are trustless.

IMO, the logic that lies with the manipulation is that when big names got to sell, the market is panicking and small traders and investors are following that creates a wave with the market.

[sheenshane]

I think the simplest logic is people are easy to fool by most influencers when it will create hype and of course, due to the demand and supply Bitcoin price will fluctuate because of its volatile nature.  People don't simply understand the real use of Bitcoin, they think if you have this, you will become rich too while thinking this during the price hike but not during the deep price in the market.

Another plus factor of manipulation is that because there are big institutional investors who are in the market now, do you think that those who invested worth millions or even billions of dollars won't sell their assets in the future?  They also considering as a whale too, we are happy that they invested that huge amount but the possible consequences ahead are waiting.

[bittraffic]

I'm not an expert but because they know the holders will eventually sell when the price is right, they all will sell and wait for the price to plummet to its very bottom so they could buy back for the cheapest price. And as a result, they get to have more coins if done right. This isn't a secret so when everyone also wants to have more BTC, they follow what has been done by the traders in the market. It doesn't just occur in crypto but in most markets.

[Dewi Aries]

Those who bought want to take profit, maybe with media or maybe people who panic sell can cause price to be down too. I think it is nature of market because people who take right time to buy and sell will get profit. And who maybe made mistake can be lose like when they bought in peak and expect for the price to be higher. But that is only my personal opinion, my conclusion is it is reaction from people who take profit, who panic sell, and who maybe aim to buy again in cheaper price.

[leea-1334]

Market manipulation is repeated with emotion, psychology and the crowd repeat what they do many times. 90% of people in the crowd don't change and they are target of influencers and manipulators.

Nice image but the one I really like is the one picture with a lot of people,,, where one guy is asking someone, what he should buy? And someone else hears buy and shouts to buy and everyone else also shouts to buy and it becomes a frenzy, but somewhere else also someone asks about sell and same thing happens in a cycle:)

We are all targets, if we wish to trade, unfortunately we have to follow as targets:)

[logfiles]

It's all about demand and supply. That's how the market works even if you check out stocks, forex, precious metals and commodities. You will always see "pumps" and "dumps"

Now for the case of crypto, the market is still very volatile, but the principle behind price movement is still the same. Don't be fooled into thinking people just invest in crypto for fun or to HODL forever. Most people are in the game to make profits, so eventually they will sell off at some point.

[Maus0728]

Huge volatility happens due to a multitude of reasons.

- At some point, bitcoin is still in its infancy stage where ountries finds it difficult to regulate due to its decentralized nature.
- It is being traded 24/7 at a global scale. This means that there are different factors such as big international exchange, big boys taking their advantage of the cycle, and trades based on market sentiment driven by FOMO and FUD.
- And any other reason that I have not included which could possibly affect the market be it political and technological aspects.

[CryptopreneurBrainboss]

IMO, the logic that lies with the manipulation is that when big names got to sell, the market is panicking and small traders and investors are following that creates a wave with the market.

One thing we have to put into consideration before we understand how manipulation of the cryptocurency market occurs so easily is that majority of the investors in the space are newbie that have no prior knowledge to investing or just trying to achieve financial freedom in the quickest way possible.

With that in mind, you'll understand why emotions still has a major say in the industry. The idea is that if whales buying into the market can pump the market then them selling too will have same effect but this time, in the opposite direction. Therefore in order to secure profit or avoid further losses, the retail investors are forced to follow the short term directions of the market.

[livingfree]

IMO, the logic that lies with the manipulation is that when big names got to sell, the market is panicking and small traders and investors are following that creates a wave with the market.

One thing we have to put into consideration before we understand how manipulation of the cryptocurency market occurs so easily is that majority of the investors in the space are newbie that have no prior knowledge to investing or just trying to achieve financial freedom in the quickest way possible.

With that in mind, you'll understand why emotions still has a major say in the industry. The idea is that if whales buying into the market can pump the market then them selling too will have same effect but this time, in the opposite direction. Therefore in order to secure profit or avoid further losses, the retail investors are forced to follow the short term directions of the market.

Very well said.

Those newbies that have bought their preferred cryptocurrencies are now relying on the market through the media and the influential person that they're following.

Having that said, they've done a mistake that they shouldn't really rely on their decisions on any person even if it's an influential guy.